OPFI Hits 79% Auto-Approval Rate: Can Its Efficiency Rise Further?

OppFi OPFI registered a 79.1% auto-approval rate in the third quarter of 2025, up 230 basis points (bps) from the year-ago quarter. Behind this record-breaking number lies OPFI’s AI and machine-learning-fueled credit assessment technology, Model 6. This high auto-approval rate was the driving force behind the company’s growth engine.

In the third quarter of 2025, the company reported $155 million in revenues, representing a 13.5% increase from the year-ago quarter. OppFi managed to display prudent expense management, as evidenced by a 490-bps dip in the percentage of expenses to its revenues.

The positive impacts of this decline were realized in the company’s net income and adjusted net income, soaring 136.9% and 41.4% year over year, respectively. This significant disproportionate rally in the top line and profitability metrics highlights operational efficiency.

The primary contributor to this impressive operational efficiency is the high auto-approval rates. By separating top-line growth from manual underwriting costs, OPFI witnessed its margins grow. However, the ability of the company to hold on to this efficiency lies in the Model 6.1 refit. This advancement is expected to take risk-pricing refinement up a notch. It will support OPFI’s adventure through turbulent credit cycles while maintaining a high auto-approval rate.

The Loan Origination Lending Application (LOLA), which the company aims to migrate in the first quarter of 2026, when combined with the credit assessment tool, will create a digitized ecosystem, facilitating the transition of labor-intensive processes into a high-margin software-first business.

OPFI’s Price Performance, Valuation & Estimates

The OppFi stock has lost 4.8% in a year against the 4.6% dip in its industry and the Zacks S&P 500 Composite’s 23.4% return. OPFI’s industry peers, Global Payments GPN and WEX WEX, have moved down as well. Global Payments has declined 25.4% and WEX has lost 9.5%.

1-Year Share Price Performance

From a valuation perspective, OPFI trades at a forward 12-month price-to-earnings ratio of 5.92X, lower than WEX’s 9.06X, while trading at a premium compared with Global Payments’ 5.75X.

P/E - F12M

OppFi, Global Payments and WEX have a Value Score of A.

The Zacks Consensus Estimate for OppFi’s earnings per share for 2025 and 2026 has been unchanged at $1.57 and $1.71, respectively, over the past 60 days.

OPFI currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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